Mehabe score: 3 G Factor: 2 Piotski Score: 7 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 7.
Description
Founded in 1985, EBIXCASH World Money India Ltd, a subsidiary of EbixCash World Money Limited, is a leading Foreign Exchange Services Company based out of Mumbai, India. It offers innovative, customized, and integrated financial solutions, relating to Foreign Exchange Services, Outward & Inward Remittances, Prepaid Cards, Gift Cards, and Travel Insurance needs of its corporate and retail clients.Site:EBIXFOREXMain Symbol:EBIXFOREX
Stock trades at 621.0, below its 50dma 623.48. However it is trading above its 200dma 543.74. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 623.48.
The 52 week high is at 740.00 and the 52week low is at 295.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -52.89% over past five years.
– has high debtors of 174.72 days.
Competition
– The industry trades at a mean P/E of 22.8x. SBI Cards trades at the industry’s max P/E of 108.3x. EBIXFOREX trades at a P/E of 17.9x
– Industry’s mean G-Factor is 2.6 while the mean Piotski score is 7.0. EBIXFOREX has a G-Factor of 2 and Piotski scoreof 7.
– Average 1 month return for industry is 1.0%. The max 1- month return was given by Bajaj Finserv: a return of 10.39 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 17.8 cr compared to Rs 14.72 cr for period ended Jun 2020, a rise of 20.9%
Operating Profits reported at Rs 5.95 cr for period ended Jun 2021 vis-vis 7.79 for period ended Jun 2020 .
Operating Margins contracted -1949.4 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 3.32 compared to Rs 1.99 for previous quarter ended Mar 2021 and Rs 5.28 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 387.0 cr for period ended TTM vis-vis sales of Rs 111.0 cr for the period ended Mar 2021, a healthy growth of 71.3%. The 3 year sales cagr stood at -65.2%.
Operating margins shrank to 14.0% for period ended TTM vis-vis 52.0% for period ended Mar 2021, contraction of 3800.0 bps.
Net Profit reported at Rs 39.0 cr for period ended TTM vis-vis sales of Rs 41.0 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 32.0 cr for period ended Mar 2021 vis-vis Rs -4.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 25.0% compared to 18.0% over the last 3 Years. – The stock has given a return of 22% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -88% vis-vis a compounded sales growth of -76% over the last 3 Years. – The compounded profit growth on a TTM basis is -10% vis-vis a compounded profit growth of 6% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 0.0% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 10.06% vis-vis 10.06% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -52.89% over past five years.
– has high debtors of 174.72 days.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 623.48 and is trading at 621.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
